AVAV vs HWM: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of September 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: AVAV is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. AVAV and HWM share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined AVAV and HWM exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

AeroVironment (AVAV) is a defense technology company specializing in unmanned and autonomous systems. It is best known for small, man-portable drones used by militaries for reconnaissance and surveillance, and for loitering munitions, notably the Switchblade family, which are precision-strike drones that have drawn significant attention from conflicts and rising global demand. AeroVironment also builds larger unmanned aircraft systems, uncrewed ground robots, and develops autonomy software and counter-drone solutions. Its primary customer is the US Department of Defense, with growing international and allied-government sales. The company has expanded through acquisitions into adjacent areas such as space, loitering munitions, and autonomy. The investment story centers on the structural growth of drones and autonomous systems in modern warfare, where small, attritable, intelligent systems are reshaping how militaries operate. Founded in 1971 and historically associated with pioneering work in efficient flight, AeroVironment is headquartered in Arlington, Virginia, and is a mid-cap defense growth company tied closely to defense budgets and procurement.

Full AVAV guide

Howmet Aerospace is a manufacturer of advanced engineered components for the aerospace and transportation industries. It is a leading maker of investment-cast turbine blades and structural castings for jet engines, engineered fastening systems used to hold aircraft together, aluminum and titanium structural parts, and forged aluminum wheels for commercial trucks. Howmet's products are highly engineered, precision metal parts that operate in extreme temperature and stress environments, particularly the hot sections of jet engines. The company makes money supplying these mission-critical components to engine makers and airframers for new aircraft production, and it earns substantial recurring spares and aftermarket revenue as engines are maintained over their long lives. Howmet was formed from the breakup of the old Arconic and Alcoa lineage and is now a focused aerospace and transportation supplier headquartered in Pittsburgh, Pennsylvania. It is widely viewed as a high-quality aerospace components company leveraged to rising commercial aircraft build rates and air travel.

Full HWM guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• AVAV drivers: Loitering munitions demand; Small unmanned systems franchise.
• HWM drivers: Commercial aerospace ramp; Engine spares and aftermarket.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: AeroVironment depends heavily on US defense procurement, so budget cycles, appropriations timing, and program decisions cause lumpy, hard-to-predict revenue and order flow. For HWM, howmet is heavily exposed to commercial aerospace, so any downturn in air travel, airline financial stress, or a slowdown at Boeing and Airbus, including production problems or order cancellations, would reduce demand.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick AVAV if you believe its drivers more; HWM if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the AVAV and HWM guides.

AVAV. AeroVironment trades on a growth multiple that reflects its leadership in fast-growing drone and loitering-munition categories rather than current earnings. The valuation embeds expectations of sustained defense procurement growth and successful expansion into autonomy and space. It is more volatile and richly valued than traditional defense primes, sensitive to order timing and conflict-driven demand swings.

HWM. Howmet trades at a premium valuation versus traditional industrials, reflecting its leverage to the commercial aerospace recovery, expanding margins, growing high-margin aftermarket revenue, and strong free cash flow. The market pays up for the structural growth and improving profitability, so the multiple is sensitive to the pace of aircraft build rates and any aerospace cyclicality. The premium leaves limited margin for execution missteps.

Headline figures (approximate, early 2026): AVAV shows revenue (ttm) ~$800 million-$1 billion, operating margin ~low-double-digit percent, net income (ttm) Modest; growth reinvested, p/e (ttm) Elevated (growth multiple); HWM shows revenue (ttm) ~$8 billion, operating margin ~22%, net income (ttm) ~$1.3 billion, p/e (ttm) ~40x.

AVAV and HWM are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AVAV and HWM exposure against your real portfolio. It is not an investment adviser.